Swiss banking giant UBS Group (UBS) has swung back to profitability after largely concluding its takeover of former rival Credit Suisse.
The Zurich-based bank posted a net profit of $1.8 billion U.S. in the first quarter, ahead of analysts’ consensus forecast of $721.4 million U.S. The profit comes after two consecutive quarterly losses at the lender.
Revenue in Q1 totaled $12.74 billion U.S., which was also higher than expected and up from $10.86 billion U.S. in the previous fourth quarter of 2023.
The bank’s capital ratio, which measures liquidity, was 14.8% compared to 14.4% the previous quarter.
UBS attributed the strong financial results to its Global Wealth Management unit, which saw revenues rise 28% in Q1 to $6.14 billion U.S.
Lower expenses and consolidation benefits following the Credit Suisse takeover also helped UBS’ results.
Management at UBS said they hoped to have the integration of Credit Suisse completed once and for all in the third quarter of this year.
After that, UBS will focus on balance sheet management and accelerating the wind-down of Credit Suisse’s legacy trading positions to release capital, said bank executives.
The stock of UBS rose 9% on news of the latest financial results. In the last 12 months, the bank’s shares have risen 40% to trade at $27.60 U.S. per share
